Fund Facts

Inception: January 1, 2003

Fund Type:Sector Equity Portfolio

I-shares Symbol: SEPIX

A-shares Symbol: SBMBX

C-shares Symbol: SEPCX

Institutional Adviser:Smith Group Asset Management

About Smith Group Asset Management

Smith Group was founded in 1995 and is 100% employee owned. Smith Group is comprised of 8 Investment professionals averaging 21 years of industry experience; including 7 Certified Financial Analyst Charterholders.

Investment Style

Smith Group employs quantitative and qualitative analysis that seeks to identify high quality companies that it believes have the ability to accelerate earnings growth and exceed investor expectations. Smith Group’s selection process consists of three steps. First, Smith Group reviews a series of screens utilizing Smith Group’s investment models, which are based on fundamental characteristics, designed to eliminate companies that Smith Group’s research shows have a high probability of underperformance. Factors considered when reviewing the screens include a multi-factor valuation framework, earnings quality, capital structure and financial quality. Next, securities that pass the initial screens are then evaluated to try to identify stocks with the highest probability of producing an earnings growth rate that exceeds investor expectations. This process incorporates changes in earnings expectations and earnings quality analysis. Finally, these steps produce a list of eligible companies which are subjected to analysis by Smith Group to further understand each company’s business prospects and earnings potential. Smith Group uses the results of this analysis to construct the Portfolio’s security positions.

Representative Clients

Florida State Board of Administration

Alabama Trust Fund

Fairfax County Water Authority

Effie & Wofford Cain Foundation

Medical Center Fund of Cincinnati

The inclusion of representative client names, although approved by the clients, does not constitute a recommendation of the manager's services. Saratoga Capital Management, LLC has selected specific representative clients from the managers' client lists based on their universal name recognition; not all accounts are managed according to the investment styles of the Portfolios.

There is no assurance that the Portfolio will achieve its investment objective.

The Portfolio’s investments in convertible securities subject the Portfolio to the risks associated with both fixed-income securities and common stocks. The Portfolio may invest in warrants. Such investments can provide a greater potential for profit or loss than an equivalent investment in the underlying security. Because of its specific focus, the Portfolio's performance is closely tied to and affected by events occurring in the energy and basic materials industries. Companies in the same industry often face similar obstacles, issues and regulatory burdens. As a result, the securities owned by the Portfolio may react similarly to and move in unison with one another. Investments in foreign securities could subject the Fund to greater risks, including currency fluctuation, economic conditions, and different governmental and accounting standards. Investments in lesser-known, small and medium capitalization companies may be more vulnerable than those in larger, more established organizations. Increased portfolio turnover may result in higher brokerage commissions, dealer mark-ups and other transaction costs and may result in taxable capital gains. Non-diversification may make the Fund more vulnerable to events affecting a single issuer.